London's Borough Yards, an upmarket redevelopment under Victorian arches near Borough Market, has been handed over to lender Cheyne Capital after failing to secure enough tenants. The site, which opened in 2022 featuring restaurants like Brother Marcus and Everyman cinema, struggled during the pandemic and faced pressure from rising interest rates in 2022-2023. Mark Capital Management, which bought the scheme in 2015, agreed to a consensual restructuring with Cheyne in July, avoiding foreclosure.

Cheyne provided a £123 million refinancing loan, but a sale didn't materialize, leading to the asset transfer. This marks a trend of 'workouts' in real estate to avoid fire-sale asset disposals. Industry expert Ali Khaki notes companies and lenders prefer consensual handovers to prevent value destruction, stating 'we can't just rely on a market turnaround' for poor-performing assets.